Another quick look at data on public tech companies : loss, loss and more loss? (2/2)

Following the initial post introducing the topic of loss (see here), here is the promised of profit/loss of 168 IT companies (software, internet, ecommerce) extracted from the 787 companies mentioned before. You will find at the end of the post the full list of companies with their IPO year, profit at IPO, in 2019, and in 2020. So are these companies losing or making money?

Here are soem results, but be careful, they are not statiscally relevent and not a proof of anything, but I hope an interesting illustration: in the 90s, the companies going public seem to be profitable, then the companies seem to be losing money at IPO ine th 21st century, with the exception of the famous outliers that Google, Facebook or Alibaba have become. These were profitable at IPO. The following table gives the average values by year of listing.

More recently, beginning in 2015, the companies are (on average) losing money at IPO but also in 2019 and 2020. Following a comment on LinkedIn that I copied in the comments below, I agree that the averages are misleading if outliers hide the number of profit or loss making companies. So here is the table of the number of profit making companies per IPO year:

Again, if you want to look at the performance of individual companies, check the table below. And as a kind of conclusion, all this reminds me a great article from the New Yorker that you may like: How Venture Capitalists Are Deforming Capitalism

 

 

Start-up Founded IPO Income at IPO Income 2020 Income 2019
Airbnb Jun-08 Nov-20 -674        -4 584           -674
Accolade Jan-17 Feb-20 -56             -50           -290
Adobe Dec-82 Aug-86 1         5 260         2 951
Adyen Nov-06 Jun-18 71            261            204
Affirm Jun-12 Nov-20 -112           -124           -134
C3.ai Jan-09 Dec-20 -70             -69             -33
Akamai Aug-98 Nov-99 -28            557            478
Anevia Jun-03 Jun-14 0,03               -1
Wallix Group Oct-03 Jun-15 0               -7               -6
Visiativ May-94 Jul-14 0                1                3
AmWell Jun-06 Aug-20 -88           -224             -87
Amazon Jul-94 May-97 -5       21 581       11 388
Ansys Jun-70 Jun-96 -1            433            451
Applovin Jul-11 Mar-21 -125           -125              76
Asana Dec-08 Aug-20 -118           -211           -118
Avalara Aug-99 May-18 -64             -49             -50
Avast Plc Oct-88 Oct-18 -33            240            352
Alibaba Jun-99 Nov-07 40       24 049       23 882
BrightCove Aug-04 Feb-12 -17               -6             -22
Baidu Jan-00 Aug-05 1         3 596            317
BigCommerce Jun-09 Aug-20 -42             -38             -41
BiliBili Jun-09 Mar-18 -28           -482           -206
Bill.com Jun-07 Nov-19 -7             -31               -7
Box Apr-05 Mar-14 -168             -43           -144
Chegg Jul-05 Oct-13 -49               -6               -9
Checkpoint Jul-93 Jun-96 15            846            825
Coinbase Jun-12 Feb-21 322            322             -30
Compass Oct-12 Mar-21 -270           -270           -388
Coursera Oct-11 Mar-21 -66             -66             -46
Coupang May-10 Mar-21 -474           -593           -770
Salesforce.com Feb-99 Jun-04 -9            455            463
Criteo Nov-05 Mar-13 12            106            135
CrowdStrike Aug-11 May-19 -140             -92           -141
Castlight Health Jan-08 Mar-14 -62             -62             -40
Casper Sleep Oct-13 Jan-20 -98             -89             -93
Citrix Apr-89 Dec-96 2            504            681
Cyber-Ark Soft. Apr-99 Jun-14 7               -5              63
DoorDash May-13 Nov-20 -668           -461           -667
Dropbox May-07 Feb-18 -111           -256             -52
Datadog Jun-10 Sep-19 -10             -24             -16
Delivery hero May-11 Jun-17 -202        -1 404           -680
DigitalOcean Dec-11 Feb-21 -43             -43             -40
Docusign Apr-03 Mar-18 -115           -243           -208
Domo Sep-10 Jun-18 -176             -84           -125
Electronic Arts May-82 Aug-89 5            837         1 000
Eventbrite May-03 Sep-18 -38           -224             -68
eBay May-96 Sep-98 -1         2 150         1 786
eGain Corp. Sep-97 Sep-99 -11                7                4
Elastic NV Feb-12 Sep-18 -52           -167           -102
Facebook Jul-04 Feb-12 1 000       32 671       24 932
Funding Circle Aug-10 Sep-18 -38           -154           -120
1-800-Flowers Aug-76 Aug-99 3              58              34
Flywire Jul-09 May-21 -11             -15             -17
Jfrog Ltd Apr-08 Aug-20 -5               -9               -5
Fastly Mar-19 Apr-19 -30           -105             -45
F-secure Dec-88 Nov-99 1              17                5
Farfetch Oct-07 Sep-18 -112        -3 200           -353
Fiverr International Apr-10 Jun-19 -36             -11             -34
Go Daddy Jan-97 Jun-14 -199           -404            218
Globant SA Aug-13 Aug-13 -1              85              74
Google Sep-98 Aug-04 105       48 217       39 725
Groupon Jan-08 Jun-11 -413           -260              10
GrubHub Feb-04 Apr-14 15           -147               -6
Guidewire Sep-01 Jan-12 35               -6              29
HelloFresh Oct-11 Nov-17 -15            405                1
The Honest Co Jul-11 Apr-21 -14             -13             -31
Hubspot Apr-05 Aug-14 -34             -43             -27
JD.com Nov-06 May-14 -50         8 311         2 307
KnowBe4 Aug-10 Mar-21 -2               -1           -124
LendingClub Oct-06 Dec-14 7           -187             -30
Lemonade Jun-15 Jun-20 -108           -122           -108
Lyft Inc. Mar-07 Mar-19 -910        -1 764        -2 702
Medallia Jul-00 Jun-19 -82           -138           -114
Mimecast Mar-03 Oct-15 1              34                4
Model N Dec-99 Mar-13 -5               -6             -15
Mogu Feb-11 Nov-18 -81           -110             -92
Momo Nov-11 Nov-14 -8            476            552
Marin Software Mar-06 Mar-13 -26             -16             -17
Microsoft Jan-75 Mar-86 24       56 627       46 374
nCino Dec-11 Jun-20 -27             -40             -28
CloudFare Jul-09 Aug-19 -87           -100           -103
Netflix Aug-97 May-02 -37         4 585         2 688
Nuance Comm Jul-94 Apr-00 -18            103            145
Xing / New Work Aug-03 Dec-06 -1              41              53
Okta Jan-09 Mar-17 -76           -193           -183
Olo Jun-05 Feb-21 3                3               -8
OneMedical Jul-02 Jan-20 -44             -76             -53
ON24 Jan-98 Jan-21 -17              21             -16
OpenDoor Tech. Mar-14 Dec-20 -339           -218           -229
Oracle Jun-77 Mar-86 2              14              14
Oscar Health Oct-12 Feb-21 -405           -402           -259
Overstock.com May-97 Jun-02 -14              49           -134
Procore Jan-02 Feb-20 -83             -95             -82
PagerDuty Feb-09 Mar-19 -38             -62             -49
Pinduoduo Apr-15 Jul-18 -83        -1 040        -1 096
PDF Solutions Nov-92 Jul-01 -9             -16               -7
Phreesia Feb-05 Jun-19 -15             -25             -15
Pinterest Oct-08 Apr-19 -62           -126        -1 358
Anaplan Jun-08 Oct-18 -47           -153           -148
Palantir Jun-03 Aug-20 -579        -1 164           -564
Poshmark, Inc. Jan-11 Dec-20 -49              23             -49
PluralSight Jun-04 Apr-18 -96
Pintec Jul-12 Jul-18 -13           -137           -728
PubMatic Nov-06 Dec-20 7              31                8
Paypal Dec-98 Feb-02 -130         5 274         3 113
Qad Inc Aug-79 Aug-97 1              11               -2
QuinStreet Apr-99 Feb-10 17              19              11
Qutoutiao Jun-16 Sep-18 -14           -171           -324
Coupons.com May-98 Feb-14 -59             -50             -22
Roblox Mar-04 Nov-20 -86           -266             -76
Redfin Oct-02 Jun-17 -22                1             -71
Renren Oct-02 May-11 -62             -95           -141
RealNetworks Feb-94 Nov-97 -4               -5             -19
Deliveroo Aug-12 Mar-21 -312           -323           -453
Rovio Nov-03 Nov-07 10              41              18
Rapid7 Jul-00 May-15 -32             -72             -40
Shopify Sep-04 Nov-15 -22            249           -141
SmartSheet Jun-05 Mar-18 -49           -120           -103
Snap Inc Jul-10 Feb-17 -514           -828        -1 000
SnowFlake Jul-12 Aug-20 -348           -543           -358
Splunk Inc Oct-03 Apr-12 -10           -777           -235
Spotify Dec-06 Feb-18 -1 606           -655             -88
Sprout Social Apr-10 Oct-19 -20             -31             -46
Square Jun-09 Oct-15 -154            272              26
Swissquote Aug-99 May-00 -2              91              44
Squarespace Oct-07 Apr-21 30              32              65
StoneCo Mar-14 Oct-18 -27            279            274
Sumo Logic Mar-10 Aug-20 -92             -78             -91
SurveyMonkey Mar-00 Sep-18 -24             -80             -62
Teladoc Jun-02 Jun-15 -17           -515             -80
ThredUp Jan-09 Mar-21 -47             -46             -36
Atlassian Oct-02 Dec-15 6           -296           -565
Tenable Sep-02 Jul-18 -41             -36             -90
Talend SA Sep-05 Jul-16 -22             -70             -58
TrustPilot Feb-07 Mar-21 6             -15             -29
Tufin Software Jan-05 Mar-19 -4             -33             -27
Tuya Jun-14 Feb-21 -70             -69             -73
Twilio Mar-08 Jun-16 -35           -472           -369
2U Apr-08 Feb-14 -27           -190           -241
Twitter Jun-06 Nov-13 -79            101            528
Unity Software Aug-04 Aug-20 -163           -274           -150
Uber Jul-10 Apr-19 987        -6 488        -7 874
Upland Jul-10 Sep-14 -9            100              90
Upstart Feb-12 Nov-20 -5                6               -1
Upwork Dec-99 Oct-18 -4             -21             -15
VipShop Holding Aug-08 Mar-12 -156         1 134            804
Vroom, Inc. Jan-12 Jun-20 -143           -193           -128
Verisign Apr-95 Feb-98 -19            837            849
Wayfair May-02 Aug-14 -11            351           -929
WorkDay Mar-05 Oct-12 -79           -206           -423
Windeln Oct-10 May-15 -8             -13             -14
Wisekey Feb-99 Mar-16 -33             -27             -21
Wish Jun-10 Nov-20 -129           -631           -144
X financial Mar-14 Sep-18 51        -1 308            774
Yelp Sep-04 Mar-12 -16             -34              35
Yext Nov-06 Mar-17 -26             -93           -120
Yandex Sep-97 May-11 100            554            321
YY Apr-05 Oct-12 -12            102            716
Zillow Dec-04 Jul-11 -6             -14           -207
Zalando Feb-08 Oct-14 -113            377            175
Zendesk Aug-07 May-14 -22           -169           -141
Zhihu Dec-10 Mar-21 -79             -96           -169
ZipRecruiter Jun-10 Apr-21 63              65               -5
Zoom Video Apr-11 Mar-19 7            659              12
Zynga Oct-07 Aug-11 90           -375              64
Zscaler Sep-07 Feb-18 -35           -107             -35
Zuora Sep-06 Mar-18 -46             -73             -85

1 thought on “Another quick look at data on public tech companies : loss, loss and more loss? (2/2)

  1. Hervé

    A quick exchange on Linkedin :
    Ignacio Barrios Baños
    Hi Hervé Lebret. Very nice post. I understand this Net Income. I would be curious to know how outliers are affecting average income 2019 and 2020. E.g. FB income for 2020 was $29B, which implies. If average of 8 companies was $4.1B, it implies that sum of other 7 was $3.8B, hence av. $0.54B per company
    Hervé Lebret :
    Hello Ignacio! That is right outliers affect average income and the 7 others individually listed in the table at the end, the 7 are Brightcove which lost 6M in 2020, Guidewire, another loss of 6M, Splunk a loss of 777M, VipShop a profit of 1B, Workday a loss of 200M, Yelp a loss of 34M, YY a profit of 102M, so most are indeed losing money like recent companies. You are right I should not have just done the averages but count how many make a loss and how many make a profit. Will add a postcriptum asap! So this is my answer to Ignacio Barrios Baños

    Reply

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